Question

find the compound interest on RS15625 for 9months at 16% per annum compounded quarterly

Answer 1

Answer:

Rs 1951

Step-by-step explanation:

Principal = Rs 15625

Find the number of periods

3 months = 1 period

9 months = 3 periods

Find the rate:

1 year = 16%

1 period = 16 ÷ 4 = 4%

Find the sum at the end of the 9 months:

Sum = P(1 + r)ⁿ

Sum = 15625 ( 1 + 0.04)³

Sum = Rs 17576

Find the compound interest rate:

Compound interest = 17576 - 15625 = Rs 1951

Answer: The compound interest is Rs 1951

Answer 2

P= Rs 15625
n= 9 months= 3 quarters
R= 16% p.a.= 4% per quarter
Amount= (15625*(1+4/100)^3)
=15625*26/25*26/25*26/25
=Rs 17576
C.I.=(17576-15625)
C.I.=Rs 1951